Today we will continue to talk in order of market value. The project we are talking about today is another stability ratio project. The mechanism is very similar to luna. It is Celo, with a current market value of US$200 million and a ranking of 120+. So is it possible? Become the next luna? You must know that Luna's highest market value in the last bull market was US$60 billion. If it becomes the next Luna in the next bull market, it will have 300 times the potential. Okay, let’s take a look at it today.
Introduction to Celo: a public chain focusing on decentralized mobile payments
Celo is an open, decentralized platform dedicated to helping everyone with a mobile phone enjoy financial services. The "Celo Alliance" covers nearly 100 individuals, technology companies, and organizations from all over the world. These partners are active on the Celo platform and help Celo grow. Celo is a carbon-neutral blockchain consisting of over 100 validators. In the Celo ecosystem, CELO is the most basic currency and can be used for exchange and democratic elections. The total amount of CELO is fixed, but the value is variable. Through CELO, you can vote for validators and bills to influence the future of the Celo platform.
The vision of the project is to establish an open financial system so that people in the world who do not have bank accounts but have smartphones can easily access financial services.
The project was launched in 2017 and launched on the mainnet in April 2020. Celo is a blockchain-based digital payment company committed to lowering the threshold for users to use encrypted financial services, allowing people without bank accounts and lack of financial resources to You can transfer funds conveniently through mobile devices and use DeFi products freely. Celo has the following features in financial services:
The first company to use stablecoins as a medium of exchange and mobile wallets as a means of payment;
Celo tweaks its Proof-of-Stake (PoS) blockchain to optimize blocks for mobile sync;
The Celo network’s gas fees can be paid in multiple currencies to accommodate users with multiple assets.
The biggest difference with other blockchains is that payments for Celo’s stablecoin Celo Dollar (cUSD) can be sent to people’s phone numbers instead of complex addresses. The phone number becomes its cryptocurrency payment address, making it more convenient to operate and use.
The Celo ecosystem consists of the following key components:
Celo Protocol: Proof-of-stake blockchain protocol that uses simple phone numbers and email addresses as public keys;
cUSD (Celo dollar): a stablecoin pegged to the U.S. dollar and backed by cryptoasset reserves;
Celo Developer Wallet: Send, receive and exchange cUSD and CELO test tokens using decentralized phone number verification.
Project Highlights
1. Celo’s stablecoin is backed by a reserve pool composed of a set of comprehensive assets. The reserve rate of the reserve pool (the ratio of the value of reserve assets divided by the value of circulating stablecoins) is much higher than 1, which provides the intrinsic value of its stablecoin. The core support
2. Although there are reserve funds, unlike MakerDAO, Celo’s stablecoin is not minted by over-collateralization, but is obtained by sending Celo tokens to the official stability module Mento. Users can send Celo worth 1 US dollar. To obtain stablecoins such as $1 cUSD, you can also reversely send $1 worth of cUSD to Mento in exchange for $1 Celo. Under this mechanism, when the market price of cUSD is lower than 1 US dollar, someone will buy cUSD at a low price in exchange for 1 US dollar of Celo. Similarly, when the cUSD is higher than 1 US dollar, someone will use Celo to mint cUSD to sell and arbitrage. The existence of investors will ensure that cUSD will not deviate too far from its anchor price.
3. There are three mechanisms that will be used to ensure sufficient funds in the reserve pool: 1. When the reserve rate is lower than the threshold, the Celo produced by the block will be included in the reserve pool to replenish capital; 2. A certain ratio of transfer fees can be charged rate to replenish capital (not currently enabled); 3. Charge a certain stability fee in Mento's trading module to replenish reserve capital.
4. In order to improve the security of the reserve, its asset portfolio is more diverse, currently including Celo, BTC, ETH, Dai and the carbon credit token cMCO2, which will be safer than just using project tokens as collateral (similar to Terra For this scheme, Luna is the invisible margin of its native stablecoin).
Public chain ecology
Like Terra, the Celo protocol is not only a stablecoin protocol, but also builds an underlying public chain, cultivates and introduces a large number of DeFi projects, provides financial scenarios for its own native stablecoins, and achieves early cold start and expansion of stablecoin networks. .
At this point, Celo is very similar to Terra in their positioning and playstyle, as reflected in:
They do not compete directly with the Ethereum platform public chain, but start from the "decentralized stable currency". This strategic positioning allows project resources to be more concentrated.
They have gradually evolved from a simple "decentralized stable currency protocol" to a large-scale financial ecosystem, and their positioning has also shifted from monetary services to an open comprehensive financial platform.
They all use DeFi to drive stablecoins, and vigorously cultivate and subsidize applications to cultivate ecological scenarios.
Development path
Currently CELO has put forward a new proposal that details the architecture of the Celo blockchain transition from OP Stack to Ethereum L2. Key differences of the proposal include: Byzantine fault-tolerant consensus using a decentralized orderer supported by Celo’s existing validator set, an off-chain data availability layer powered by EigenLayer and EigenDA, and operated by Ethereum node operators, and through Stake ETH for protection.
risk
Different from luna's ust, Celo's collateral not only includes CELO, but also other collaterals, such as BTC, ETH, DAI, USDC, etc. It can currently be seen that Celo's ghostwriting mortgage accounts for 44% of all collateral. .%, so if Celo falls sharply, it will be no problem as long as the value of other collateral is greater than the stable market value. But if the market value of Celo shrinks rapidly, causing other collateral in the pool to be unable to cover the stable market value, then a crash like Luna is likely to occur.
Crowdfunding information
Token distribution
The maximum supply is 1,000,000,000 CELO, the circulation rate is 48.74%, and the crowdfunding price is $1. The current price is around $0.4, and the peak price was $10 (in 2021), so the current decline is almost more than 90%. The team took The ratio is a bit high, 19.4% + 12% + 7.4% = 38.8%. The ratio is a bit high, and then it has been falling since 22 years, and the team has been shipping.
Finally, we summarized that this project is actually exactly the same as Luna's idea, but the difference is that it does not use all celo as collateral, it also has some other currencies, but Luna also had a lot of BTC as collateral at the time , so in fact, there is not much change in essence. Also, he said that the mobile phone number can be used as the address of the public key account. This requirement is actually relatively fake. I have talked about many stability ratio projects before. In fact, in comparison, I think frax is slightly more reliable. To put it bluntly, the death spiral has already happened once, and I think many people don’t want it to happen again. Finally, let’s put some information about the project on the planet.
